It’s stupid to believe that IT companies have set the right price for their products that’s sits perfectly between the production cost and what people are willing to pay and can’t change it any further. Every company has a margin that can be narrowed by lowering price and stimulate sales, and when you talk about Apple they have the biggest margin of all.

    In this case it comes at no surprise that Steve Jobs is ready to lower iPad’s price (currently the range goes from 499 to 829$) to stimulate sales if consumer reaction once it’s launched doesn’t meet expectations. What’s curios is that Apple execs are admitting this fact already, way before the iPad official store debut. Are they afraid already after they’ve seen press reactions? I bet they are and should be, as they’ve received a lot of heat because of things like lack of flash, webcam and hard to use virtual keyboard.

    Current iPad pricing

    Current iPad pricing

    My take on this matter is that Apple will do whatever it takes to impose iPad as the biggest player in the slate tablet niche it created, even biting from smartbook and netbook territory. They did it with the iPhone, which has seen a 200 $ price decrease just a few months after launch and will do it again if necessary, as after all Apple has a 42% margin for iPad, which is huge when you talk about gadgets.

    Source: All Things Digital